C2004/6675, Transcript of Proceedings [2004] AIRCTrans 4862 (13 December 2004)

AUSCRIPT AUSTRALASIA PTY LTD
ABN 72 110 028 825

Level 4, 179 Queen St MELBOURNE Vic 3000
(GPO Box 1114 MELBOURNE Vic 3001)
Tel:[phone] Fax:[phone]

TRANSCRIPT OF PROCEEDINGS


O/N 9307

AUSTRALIAN INDUSTRIAL

RELATIONS COMMISSION

COMMISSIONER FOGGO

C2004/6675
C2004/6797

FINANCE SECTOR UNION OF AUSTRALIA

and

GE AUTOMOTIVE FINANCIAL SERVICES

Notification pursuant to section 99 of the Act
of an industrial dispute re conditions of employment

AGC FINANCE COMPANY AWARD 2000

Application under section 113 of the Act
by the Finance Sector Union of Australia
to vary the above award re wages and conditions
of employment

MELBOURNE

10.05 AM, THURSDAY, 2 DECEMBER 2004

PN1

MS H. LEWIS: I appear on behalf of Finance Sector Union of Australia.

PN2

MR P. BURNS: I seek leave to appear for the companies in both of those matters. Commissioner, I am here with MR W. ANTONIK from the companies.

PN3

THE COMMISSIONER: Is there any issue regarding leave?

PN4

MS LEWIS: No, Commissioner.

PN5

THE COMMISSIONER: No. Leave is granted, Mr Burns.

PN6

MR BURNS: Thank you, Commissioner.

PN7

THE COMMISSIONER: Yes, Ms Lewis?

PN8

MS LEWIS: Dealing with the first matter first, Commissioner. The section 99 application notification of alleged industrial dispute between the FSU and GE Automotive Financial Services arising from the service of a log of claims, as stated in the notification of the alleged industrial dispute, on 4 November this year a claim was made on GE Automotive Financial Services who were served with a letter of demand and log of claims. The employer did not accede to the claims within the time specified in the letter of demand, which is marked at schedule A of the notification. The SFU therefore seeks the assistance of the Commission in settlement of this dispute.

PN9

The log of claims relates to the wages and conditions of employment of existing and future employees within the industry in which the SFU is registered. Attached to the notification of the alleged industrial dispute is a statement by Cath Noye, the assistant national secretary of the SFU, dated 17 November 2004. The statement confirms that on 4 November 2004 the union caused to be served upon GE Automotive Financial Services a letter of demand and log of claims marked A by causing the said letter of demand and log of claims to be posted to the employer at its address at 572 Swan Street in Richmond, Victoria by pre-paid registered mail from the Post Office at 410 A'Beckett Street in Melbourne.

PN10

That schedules A and B are true copies of a letter of demand in the log of claims, and the registered post mail receipt, and that the letter of demand and log of claims were served with the authority of the union's national executive. Also attached to the notice is a statement by Sylvana Lofaro, dated 17 November, confirming that she is the industrial research assistant in the national office of the SFU, and that on 4 November she caused a letter of demand and log of claims be posted to the employer by pre-paid registered mail from the post office at 410 A'Beckett Street in Melbourne.

PN11

Following the lodgement of the notification of the alleged industrial dispute the ..... you received from the Commission are those fixing the time, date and place of the hearing of this matter, and the employer was advised by email and facsimile on 22 November of the time, date, and place of this hearing. Commissioner, whilst GE Automotive Financial Services has not acceded to the letter of demand and log of claims they have indicated, as I'm sure Mr Burns will confirm, that they do not oppose the finding in dispute.

PN12

Commissioner, I should also mention that the company the employer operates beyond Victoria, and therefore it satisfies interstatedness. The FSU seeks the finding that an industrial dispute exists between the FSU and GE Automotive Financial Services. The subject matter of the dispute being the wages and conditions of employees as contained in the log of claims in respect of existing and future employees, whether members of the SFUA or not, and in the industry in respect to which the union is registered, if it please the Commission.

PN13

THE COMMISSIONER: Yes, thank you. Mr Burns?

PN14

MR BURNS: Yes, Commissioner, I can confirm that GE Automotive Financial Services does not oppose the finding in dispute, if the Commission pleases.

PN15

THE COMMISSIONER: Yes, are there any issues relating to Electrolux which come up regarding the log of claims, Mr Burns?

PN16

MR BURNS: Commissioner, there are no issues that we seek to take the Commission to in relation to the finding in dispute.

PN17

THE COMMISSIONER: Yes, thank you.

PN18

MS LEWIS: Commissioner, if I can just comment?

PN19

THE COMMISSIONER: Yes.

PN20

MS LEWIS: It is a slightly amended log of claims from our standard log of claims taking Electrolux into account.

PN21

THE COMMISSIONER: Yes, thank you, Ms Lewis. I have had a look and I don't have concerns. I'm going to issue today a record of findings pursuant to section 101 of the Workplace Relations Act 1996. I find that there is in existence industrial dispute. The parties to the industrial dispute, the Finance Sector Union of Australia and GE Automotive Financial Services are the subject matters which are in dispute, insofar as they are industrial matters within the Act are those matters set out in the log of claims, and the letter of demand dated 4 November 2004. A record of finding to that effect will issue. In relation to the section 113 application, Ms Lewis?

PN22

MS LEWIS: Well, actually before that, Commissioner, we also wish to make an application for a Roping-In Award. GE Practical Group owns and operates a number of subsidiary companies within Australia, and in June 2002 one of those subsidiaries, GE Finance Australasia Pty Ltd, trading as GE Money, purchased Australian Guarantee Corporation Ltd, which is better known as AGC Finance, from the Westpac Banking Group. Through that transmission of business GE Finance Australasia became bound by the AGC Finance Company Award 2000, which is Award AW769384 and FSU was the union party to that award.

PN23

Although, as you have heard from GE Automotive Financial Services does not accede to the letter of demand and log of claims they have indicated they are willing to be roped into the AGC Finance Company Award in part settlement of the industrial dispute. The work performed by the employees of this employer is Financial Services work, similar and related to work currently covered by the AGC Finance Company Award. The SFU therefore seeks to have GE Automotive Financial Services become respondent to the AGC Finance Company Award. I now wish to tender a draft Roping-In order for the AGC Finance Company Roping-In Number Award 2004.

EXHIBIT #L1 DRAFT ROPING-IN ORDER

PN24

MS LEWIS: Commissioner, an electronic copy of this was forwarded to your associate on Tuesday of this week. The only difference is that we would seek to have the operative date 1 January 2005. The grounds in support of our application for a Roping-In Award are: first we believe that the making of the Roping-In Award is consistent with the objects of the Workplace Relations Act, in particular section 3, Principal Object of the Act, Part VI, Dispute Prevention and Settlement, Division 1A, Objects of Part, Section 88A Objects of Part, and Section 88B Performance of a Commission's Functions under this Part, and two, the making of the Roping-In Award would ensure that an award safety net is fair and enforce for minimum wages and conditions of employment is maintained. We therefore seek that you issue the draft order with effect from 1 January 2005.

PN25

THE COMMISSIONER: Yes, thank you. Mr Burns?

PN26

MR BURNS: That application, Commissioner, is by consent. I have nothing further to add in relation to the submissions of Ms Lewis, if the Commission pleases.

PN27

THE COMMISSIONER: I am going to grant the application in relation to the Roping-In Award. The terms of the Award will be in the terms of exhibit L1 which is the draft order. It goes to the issues relevant to a Roping-In Award. I note that the date of operation will be the first pay period on or after 1 January 2005. The AGC Finance Company (Roping-In) number 1 Award 2004 is made. The Award shall remain in operation for 12 months. Ms Lewis?

PN28

MS LEWIS: Now, the section 113 application, Commissioner. I would like to hand up a copy of the section 113 application to vary the AGC Finance Company Award 2000, and the associated draft order.

PN29

THE COMMISSIONER: Yes.

EXHIBIT #L2 COPY OF SECTION 113 APPLICATION

PN30

MS LEWIS: Commissioner, a copy of the application to the vary was emailed to your office earlier this week, but you will not this is actually a copy signed by both parties. It is an application to vary the AGC Finance Company Award 2000 in a number of respects. To amend the name of the Award in order to reflect the change of ownership from the AGC - Australian Guarantee Corporation Limited, which was owned by Westpac, to its new owner GE Capital Group. Also to vary the scope and parties bound clause in order to reflect the employer as transmission and also the GE Automotive Finance Services who have now been Roped-In to the Award.

PN31

Vary all references to the employer's corporate entities throughout the Award. To vary the parental leave clause to provide for parental leave for electrical casual employees as per the test case in PR904631. To vary the provision classifications in clause 8 and schedule A by incorporating the job classifications that cover GE Automotive Financial Services employees. To also increase the rate of supported wage minimum in line with our Full Bench Decision in PR949915. To vary all Award salary rates - - -

PN32

THE COMMISSIONER: What was the print number of that?

PN33

MS LEWIS: Print 949915.

PN34

THE COMMISSIONER: Yes, thank you.

PN35

MS LEWIS: To vary all Award salary rates to give effect to safety net review wages May 2001 decision, wages May 2002 decision, and May 2003 decision in prints PR002001, PR002002 and PR002003, and to adjust certain allowances. The application is fairly straight forward, your Honour - Commissioner. It does bring the Award up to date, and it does incorporate the specific job classifications and the employer who was subject to the Roping-In Award that you have granted this morning. Perhaps, if I leave my submission there and just answer any questions that you may have in respect of the application.

PN36

THE COMMISSIONER: It does not entirely bring it up to date, does it, because it does not incorporate the up to date safety net decision of the Full Bench in May 2004?

PN37

MS LEWIS: No, it does not. I'm sorry, I should have commented on. It does not hand that on because although the current employees covered by the Award it won't represent a pay increase to them. 2004 would represent a pay increase and the increases do represent an increase to those GE Automotive Financial Services people who aren't currently covered by an Award. So we agreed to wait to bring the May 2004 in.

PN38

THE COMMISSIONER: Yes, thank you. Mr Burns?

PN39

MR BURNS: If the Commission pleases, I can confirm the application does make evident that this is an application by consent. We concur with the submissions that the application is in accordance with the principles Ms Lewis has addressed you on the safety net increases, and we concur with those submissions. The terms of the draft order are also by consent. We have agreed upon those terms, Commissioner, and it does reflect the reality of the situation of the coverage under the old AGC Award as it currently stands, if the Commission pleases.

PN40

THE COMMISSIONER: Yes, thank you. There are a number of issues. At 3.12 of the exhibit L1, that should be GEAFS, rather than GEAFC.

PN41

MR BURNS: That is correct, Commissioner.

PN42

THE COMMISSIONER: Yes, and in relation to the total package at 3.19, that goes to the definitions, I assume, that are in schedule A against each of the AGC position classifications where it indicates it is packaged, or unpackaged.

PN43

MR BURNS: That is correct, Commissioner.

PN44

THE COMMISSIONER: Yes. There's nothing here, unless I've missed it, that actually goes to the elements of the package?

PN45

MR BURNS: That is correct.

PN46

MS LEWIS: That is correct, Commissioner.

PN47

THE COMMISSIONER: Yes.

PN48

MR BURNS: Yes.

PN49

THE COMMISSIONER: All right, thank you.

PN50

MR BURNS: Sorry, Commissioner, I was just going to quickly check that.

PN51

THE COMMISSIONER: Yes. All right, thank you, Mr Burns. You really are going to call this the GE Money Award 2004?

PN52

MS LEWIS: Commissioner, yes. GE a number of - - -

PN53

THE COMMISSIONER: No, no, I just wondered. Everyone will want to be a party to it I have no doubt.

PN54

MS LEWIS: None of the subsidiaries are trading as GE Money.

PN55

THE COMMISSIONER: Right. A very snappy decision - a snappy title. I am satisfied on the basis of the decision and the application that has been lodged that I should grant the application to vary the AGC Finance Company Award 2002. The terms of the variation are set out in exhibit L1. I'm satisfied that in relation to the titles to the test case decisions and to the matters going to the arbitrator's safety net reviews that they have been done consistent with the Full Bench decisions against each of those matters.

PN56

In addition I'm satisfied that the clause which goes to the supported wage minimum rate is consistent with the recent Full Bench decision. Pursuant to section 113 of the Act the variations will take effect from the first pay period to commence on or after 1 January 2005, and shall remain in force for a period of 12 months. These proceedings are now adjourned.

ADJOURNED INDEFINITELY [10.21am]

INDEX

LIST OF WITNESSES, EXHIBITS AND MFIs

EXHIBIT #L1 DRAFT ROPING-IN ORDER PN24
EXHIBIT #L2 COPY OF SECTION 113 APPLICATION PN30